Fidelity May Launch Bitcoin Custody Service in March, Say Sources

By Swati Kishore

As per reports by Bloomberg, the Boston-based mutual fund company, Fidelity Investments has planned to launch its Bitcoin custody service in March 2019.

Reportedly, the introduction of the Bitcoin custody service is seen as a step by the company to allay the fear of trading in digital currencies.

Fidelity had first announced the launch of the service back in October 2018 when the company stated that it would offer an array of digital asset products for institutional investors.

Unnamed sources close to the company have said that while plans are still private, but among the slew of products to be offered by the mutual fund giant Bitcoin storage services will be the first. Next in line would be Ethereum custody services.

The company released a statement on Tuesday explaining,

“We are currently serving a select set of eligible clients as we continue to build our initial solutions. Over the next several months, we will thoughtfully engage with and prioritize prospective clients based on needs, jurisdiction and other factors.”

Custody is a common service in the traditional financial markets. It involves the storage of securities by a third party to prevent the risk of them being stolen or lost.

While many Blockchain-based startups are offering crypto custody services, however, institutional investors looking to better safeguards their assets have been waiting to work with big financial firms.

Apart from Fidelity, many big names such as JPMorgan Chase, Bank of New York, and the Nothern Trust are exploring the introduction of Bitcoin custody services.

As compared to its counterparts, Fidelity has been long involved in the world of cryptocurrencies.

The firm had started mining Bitcoin in the year 2015. Perhaps, this interest in the non-traditional crypto market can be explained by the leadership of Abigail Johnson,

Johnson is the Chief Executive Officer of Fidelity Investments. She is also a proponent of digital currencies. Johnson is of the view that their Fidelity Digital Assets arm will whet the appetite of Wall Street companies which have so far been cautious about dealing in digital assets.